On February 1, Watson Storage agreed to rent Hillbourne Manufacturing warehouse space for $175 per month. Hillbourne Manufacturing paid the first three monthsâ€™ rent in advance.Prepare the necessary adjusting entry for Hillbourne Manufacturing on February 28, assuming it recorded the expenditure on February 1 as Prepaid Rent. Prepare the necessary adjusting entry for Watson Storage on February 28, assuming it recorded Hillbourne Manufacturingâ€™s payment as Unearned Rent Revenue.